

Standing Committee C

[Mr. Eric Illsley in the Chair]

Gangmasters (Licensing) Bill

Eric Illsley: I remind the Committee that there is a money resolution connected with the Bill, copies of which are available in the Room.
 Motion made, and Question proposed, 
That, if proceedings on the Gangmasters (Licensing) Bill are not completed at this day's sitting, the Committee do meet on Thursday 29th April at 9.30 am—[Jim Sheridan.]

Alun Michael: Although my point is not directly related to the sittings motion, it might ease the work of Members and therefore be helpful if I make it now. I have asked my officials to provide a draft of the Bill as it would read were all the amendments made. If I have your permission, Mr. Illsley, and that of the Committee, I can make that available to Committee members now. As many of the amendments are quite complex, doing so might ease the pressures on the Committee.

Eric Illsley: I am sure that the Committee will be grateful for that provision.
 Question put and agreed to.

Clause 1 - Interpretation

Question proposed, That the clause stand part of the Bill.

Eric Illsley: With this it will be convenient to discuss the following: new clause 3—Work to which this Act applies.
 New clause 5—Territorial scope of application. 
 New clause 26—Meaning of ''worker''.

Jim Sheridan: Welcome to the Chair, Mr. Illsley. You may be as anxious as I am, given that this is my first opportunity to present a private Member's Bill. I hope that people will be tender with me.
 I am deleting clauses and making amendments to clause 6 following extensive discussions with the Government on what detailed provisions would be required. I have tabled new clauses to replace the deleted ones. My intention has always been to ensure that any law on the licensing of gangmasters is effective and robust. I believe that the amendments I propose will deliver just such a law. 
 I thank the Government for the help and support that they have given me in redrafting the Bill, and all the coalition partners within the group who are worked hard alongside us. That group encompasses organisations such as the National Farmers Union to the Transport and General Workers Union, so most people will recognise that that is a strange coalition partnership. All the partners have helped to inform my thinking about how the legislation should operate. The 
 coalition for progress spans workers, employers, industry, unions and the wider community. Its breadth and depth powerfully reflect the seriousness of the issue and the merits of and the need for the Bill. 
 I also thank my parliamentary colleagues, many of whom are here today. They have been very supportive of what I am trying to achieve, and they have given wise advice on how best to reach our shared goal. 
 On Second Reading I said that the tragic loss of life at Morecambe bay was a terrible reminder that it is time for legislation, not exploitation. It is fortuitous that the Committee is sitting today, on what is regarded as the workers memorial day. That is a fitting tribute to workers not only throughout Britain, but those poor souls who lost their lives on Morecambe bay. We have a duty to ensure that those who lost their lives on that terrible day have a fitting memorial. 
 Today, with the Bill, we have an opportunity to build that memorial and to do what we are elected to do as Members of Parliament—to make a difference to people's lives.

Gavin Strang: I have a question about a definition in new clause 3, but before I ask it, let me congratulate my hon. Friend on getting us to this point, which is a great achievement. Foremost among his supporters is the TGWU, but he has support from other organisations and stakeholders in the business community. As someone who has been around a long time, I know that the Country Land and Business Association, the NFU and the TGWU do come together from time to time. Other organisations from the food industry have joined in as well.
 My question relates to the definition of forestry. Before I raise it, I wish to explain my entry in the Register of Members' Interests. It has been in there for at least two years, and this is my first chance to explain it. 
 As most people know, I have a farming background. The Strangs moved from Strathaven in the west to Perthshire in 1906. My grandfather moved and my father took over the farm, and he should have got the chance to buy it but it did not work out that way when it was transferred from the private landlord to the insurance company. Eventually, my brother got the chance to buy it, and I helped him out by buying a couple of fields in a woodland area, so, I have a small wood. I do not get any income from the woodland. One earns income from forestry, but I would have to spend money on thinning trees. When one buys a forest, one has to spend money; it is only when one harvests it that one gets any income. 
 The critical point I wish to make relates to the position of forestry workers. Some people will recall a very bad case in Scotland. I think that the worker involved was Portuguese—he was certainly from the Iberian peninsula—and the agent or gangmaster was also from the continent. He was working in a productive forest, not woodland—it is very important to distinguish between a productive forest and recreational woodland—when he broke his back. The TGWU and Alex Smith, the local Member of the 
 European Parliament, helped him out at the hospital because he did not speak any English. At the time, there was quite a reaction in the Scottish papers. 
 That is a classic case of what can happen when gangmasters exploit workers on the scale that they have been doing in many sectors of the British economy. The Bill deals only with agriculture, forestry and related sectors. The definition of agricultural work refers to the use of land as an 
''orchard or osier land or woodland''.
 It is critical to make sure that the term ''woodland'' applies to all woods, not just hardwoods, softwoods, and those that are important to the farming industry in providing shelter. It must include the large productive forests, so that every worker in the forestry industry who works with trees is covered..

Mark Simmonds: It is a delight to serve under the auspices of your chairmanship yet again, Mr. Illsley. I congratulate the hon. Member for West Renfrewshire (Jim Sheridan) on his hard work in getting this important Bill to Committee stage. It has been a tremendous achievement to hold together such a disparate group of supporters, and he has done an excellent job. I also thank the Minister, who has taken a lot of time and trouble to make sure that the Government co-operate with the hon. Gentleman to ensure that his Bill gets on to the statute book as fast as possible.
 Many Members will know of my personal support for the Bill. I introduced a ten-minute Bill along similar lines last September. However, I have a number of questions to ask as we go through the new clauses, and I hope that the Committee will bear with me. I am keen to make sure that the perspective of the Lincolnshire agricultural sector is expressed, so that there are no unnecessary regulations and burdens on it or on legitimate gangmasters and labour providers, who must not be deterred from providing much-needed labour, much of it migrant labour, in future. We must make sure that the British agricultural sector is not harmed by this legislation in any way. 
 Despite what the hon. Gentleman said, unfortunately three Conservative Members who have taken a keen interest in the Bill cannot be here this afternoon because of immovable prior engagements. They are my hon. Friend the Member for North Shropshire (Mr. Paterson), who made a detailed and well-researched speech on Second Reading; my right hon. Friend the Member for South-West Norfolk (Mrs. Shephard), who was Minister of Agriculture, Fisheries and Food in the Conservative Government and strongly supports the Bill; and my hon. Friend the Member for Mid-Worcestershire (Mr. Luff), who has taken an active and supportive role in turning the Bill into an Act. 
 There are some broader points relating to the group of new clauses that I think the Minister needs to address, either when he winds up this stand part debate, or later. First, the seeming duplication that will exist between this Bill, when it is enacted, and the Employment Agencies Act 1973, requires clarification. We do not want to make legitimate labour providers go through two sets of regulations to meet the 
 legislative criteria, nor do we want to allow the 1973 Act to be route whereby rogue or illegitimate gangmasters circumvent the Bill's provisions. 
 I shall deal with other regulations later, as well as certain impacts of the Bill, particularly the costs that are set out in the draft cost analysis, which I fear may deter some legitimate labour providers.

Julian Brazier: On the point about overlap with earlier legislation, does my hon. Friend agree that a crucial, related issue, which the NFU raised, is enforcement? It is arguable that earlier problems arose from a lack of enforcement, and the NFU's point that that there must be effective enforcement must be seen alongside the issue of duplication of legislation.

Mark Simmonds: I agree with my hon. Friend, who makes a good point. I suggest that we get into the details of enforcement and the related issues and problems when we debate new clause 15 and the associated amendments. I hope that the Minister will be able to provide clarification today, or that he or his advisers will be able to set out the details more clearly either in future regulations as adjuncts to the Bill, or by writing to hon. Members.
 I broadly welcome new clause 3. I am aware that the most serious problems with rogue gangmasters exist in the agriculture and horticulture sectors, but there is a danger that illegal operators will be able to circumvent the legislation if other key sectors in which they are involved are not included. The right hon. Member for Edinburgh, East and Musselburgh (Dr. Strang) gave a good example. In my experience, the more prevalent examples are in office cleaning and catering. Some gangmasters in Lincolnshire and elsewhere in the UK provide casual labour to various sectors, and we must ensure either in the Bill or in regulations that it will not be possible for a gangmaster to change the remit of his practices, or to pretend that he provides gang labour only to the office cleaning or catering sectors when in fact he is subcontracting his business to the agriculture and horticulture sectors, and thereby getting around many of the excellent clauses and the penalties in the Bill. 
 The NFU has clearly said that it is wrong in principle for employers in the agriculture and horticulture sectors to be singled out for new regulations and costs, whereas those operating in other sectors are not. That defeats our attempts to create a level playing field for legitimate providers. As we all know, illegitimate providers undercut legitimate providers in the marketplace. 
 My other concern about new clause 3 is the ambiguity around the terms ''consumable produce'' and ''agriculture''. How far up the food chain will the licensing scheme apply? For example, is a gangmaster who provides labour for sandwich packing to be covered by the legislation? It would be wrong if a supermarket or someone between the supermarket and the producer or grower were caught by the legislation if that is not what is intended, or if someone broke the law unknowingly, because they did not think that the law applied to them. 
 I welcome new clause 5, which would bring gangmasters acting outside the United Kingdom under the legislation. There are serious problems with Portuguese gangmasters in my constituency and elsewhere in Lincolnshire and Norfolk, and Chinese gangmasters have significant operations in the constituency of the hon. Member for Morecambe and Lunesdale (Geraldine Smith), where a terrible tragedy happened. In practice, how will we enforce the legislation against gangmasters who operate from outside the UK and who may never have set foot in this country? 
 I raised the issue on Second Reading. Some Lincolnshire packhouse owners and producers operate with Portuguese gangmasters who fly workers in or bring them in by other means, sometimes legally, sometimes illegally. The Minister is aware of that practice. Only yesterday, I discussed with the relevant Foreign Office Minister the fact that many Latin Americans are now coming up through the Iberian peninsula with forged documents. They pretend to be Portuguese or Spanish when in fact they are Brazilian or Bolivian. All those issues must be considered. Is the intention to seize the assets of foreign gangmasters as well as those of rogue UK gangmasters? How will that operate, and how will the former be prosecuted? 
 New clause 26 seems sensible. It states clearly that ''worker'' includes illegal workers who have no right to be in this country. In my experience, it is those workers who are exploited, mainly because they have no recourse through the trade unions, the law courts or the police. That is the hole that we need to plug.

Andrew George: I echo the remarks of the hon. Member for Boston and Skegness (Mr. Simmonds) in respect of the pleasure of serving under you, Mr. Illsley, and in congratulating the hon. Member for West Renfrewshire on his promotion of the Bill. I know that the hon. Gentleman and the Government have done a tremendous amount of productive work.
 The Government must understand that there will be a strong sense of regret in the agricultural and shell fishing communities that the Bill is restricted to them. The illegitimate and appalling misuse of labour is not restricted to those sectors. Although under new clause 3(5) 
''The Secretary of State may by regulations make provision''
 to extend the requirements of the Bill to other activities, I should prefer it not to be restricted in that way. It is a disappointment, and I imagine that some people in the agricultural sector will express regret. The Bill appears to focus on their sector as if it were the cause of the problem. That is not the message that we want to send out. 
 My second point relates to clarification. In my constituency, some gang labourers who work in the fields are subsequently engaged by packhouses. At present, the packaging and processing of foodstuffs is relatively rudimentary, but there is no knowing how far the packaging, processing, cooking and 
 development of foodstuffs and consumables will go. It would be helpful to have further clarification from the Minister in that respect.

Jim Sheridan: It might be appropriate if I explain the thinking behind the new clauses.
 New clause 3 is a key element of the revised Bill. It defines the types of work to which the Bill will apply. The Bill is intended not to regulate each and every industry, but to regulate gangmasters in the sectors where they are most common and where the abuses by rogue gangmasters are the most extreme. Therefore, as amended, the Bill will cover all agricultural work and the gathering of shellfish. It also includes the processing or packaging of produce derived from those activities and the processing or packaging of fish. 
 As I understand it, the definition of agriculture is based on the definition in the Agricultural Wages Act 1948, with which many of us are familiar. New clause 3(4) defines shellfish in wide terms, and subsection (5) gives the Secretary of State the power to include or exclude work from the prescribed limits. Perhaps I should give my right hon. Friend the Minister the opportunity to elaborate, if he wishes to do so, on the way in which he might use that power and on the activities that he intends to include in the regulations. 
 New clause 5 is a straightforward provision that defines the territorial scope of the Bill. It will apply to the whole of the UK and to UK coastal waters, which extend six international nautical miles out to sea. The new clause is designed close any loopholes through which rogue gangmasters might try to escape by ensuring that the Bill applies to the supply of gang labour in the UK, even if the gangmaster is based outside it. 
 New clause 26 defines worker in the widest sense, because we must ensure that the Bill applies to all workers engaged by gangmasters. A worker is a worker is a worker, and no worker, indigenous or migrant, should be exploited. The clause will also extend the protection from exploitation to people who may be working illegally. The provision will be the key to ensuring that workers feel able to alert the authorities to any malpractice or breaches of the law on the part of their employers. That is crucial.

Alun Michael: I welcome the opportunity to serve under your chairmanship, Mr. Illsley. I am sure that having shared a room with you at the beginning of our parliamentary careers will not bring me any advantage, but I hope that such shared experience brings no disadvantages.
 I congratulate my hon. Friend the Member for West Renfrewshire on introducing the Bill and on the considerable amount of time and effort that he has invested in working with myself, my officials and the consortium of supporting organisations to produce an extremely effective Bill. 
 Hon. Members who have spoken have raised several issues. They want to ensure that we understand exactly what the legislation will do. I welcome the amount of engagement there has been from Committee members and from others prior to today's sitting. In recent weeks, I have had many 
 meetings with the TGWU, including with its deputy general secretary, Jack Dromey, and with the NFU, including its president, Tim Bennett. The fact that people at that level as well as people from the engine rooms of both organisations—to refer to those present today—have been involved demonstrates how seriously the matter is being taken. 
 During the course of our consideration, my hon. Friend and I have also met the wider group of stakeholders, which gave us an opportunity to talk through some of the issues, and we have had two meetings with Committee members. I appreciate that not all Committee members were able to attend, but the issues that have been raised in the debate are ones that we spent some time on during those meetings. Such engagement is very unusual. The right hon. Member for South-West Norfolk attended both meetings and drew on her experience, as did the former Secretary of State for Health, my right hon. Friend the Member for Holborn and St. Pancras (Mr. Dobson) and other colleagues. We also benefited from the experience of a former Minister of Agriculture, Fisheries and Food, my right hon. Friend the Member for Newcastle upon Tyne, East and Wallsend (Mr. Brown). Even before today's debate, we have had considerable, knowledgeable and well-informed input from MPs. I believe that that process will have helped us to bring a well formed measure before the Committee. 
 My right hon. Friend the Member for Edinburgh, East and Musselburgh asked about the definition of agriculture and the impact on forestry. The definition of agriculture that has been used is a wide one that reflects previous use in agricultural wages legislation. That means that the Bill will cover gangmaster activity in forestry. Work in recreational woodlands or in sawmills, for example, might be different matters. However, one of the points that I would make to those who might want to expand the Bill's scope reinforces a point made by my hon. Friend the Member for West Renfrewshire. The Bill's scope is very clear. It is targeted at agricultural and related activities—including the gathering of cockles, for the obvious reason that the tragic events in Morecambe bay brought that activity to the attention of everyone in the House and the wider public. 
 Our aim has been to draft the measure as widely as possible and to make sure that we do not create unintended loopholes. We want to stay in the scope of the Bill as originally tabled, for the reasons of priority that my hon. Friend explained and for the reasons of procedure that I have outlined. We will have the capacity to exclude activities from the operation of the Bill. It is better to act that way around, because it ensures that we do not miss something out and thereby create a loophole, and it enables us to avoid excessive bureaucracy. That is why the Bill is designed as it is.

Gavin Strang: Although I am not suggesting that my right hon. Friend expounds at length on this narrow point this afternoon, there has been a great increase in recreational woodland. Local authorities and all sorts of private sector people rightly prize it, because people like walking in woodlands. Many people therefore
 work in woods, not only those who cut down trees or maintain them, but park keepers and other workers. It is important that a wood that is defined as recreational woodland is dealt with, but I defy anybody here to tell the difference between such woods by looking at them. They include both hardwoods and softwoods. That is an interesting point, but I am not asking my right hon. Friend to go into it now.

Alun Michael: I am happy to write to my right hon. Friend on that point. I think that parklands—parks in cities—will not be covered, even though they have woods in them, because their purpose is clearly recreational rather than agricultural. He raises an interesting point. We will have to define the interesting points that can be dealt with in the Bill and those that lie outside its scope and will have to be explored elsewhere.
 I have covered several points raised by the hon. Members for Boston and Skegness and for St. Ives (Andrew George) in general terms by referring to the drafting being wide in order to narrow down. Now that the Bill has reached a point from which we hope it will be able to make progress, we intend to get on with the drafting of the secondary legislation that will be required and to share that with members of the Committee. That can be done on an informal basis as the Bill proceeds and goes to another place. In our previous discussions, I said that I would share that information with interested Members, primarily those who are members of this Committee as soon as possible. That may assist Members in another place in their consideration of the Bill and help them to be sure of its intentions.

Mark Simmonds: To clarify, is the Minister guaranteeing that the regulations will be ready for examine when the Bill is discussed in another place? If not, when will they be ready? Will they be ready by the time that the Bill comes back to the House of Commons for consideration on Report?

Alun Michael: This is a private Member's Bill, so consideration after a Bill has gone to the other place and returned to the Commons is dangerous territory. It is possible for a piece of legislation that has general support to fall owing to lack of time. That is why we are so keen to get it right from the start. I am saying that we are able to go so far. I explained our intentions in the meetings that we held, and we are responding to comments that have been made. It is an iterative and engaging process. I hope to have at least a draft of the secondary legislation before the Bill goes to another place and to listen to the views of Members on it. I hope that that will be helpful.
 Committee suspended for a Division in the House. 
 On resuming—

Alun Michael: I shall respond in general terms to one or two of the issues of concern, but if members of the Committee wish me to, I shall be happy to go into greater detail outside the Committee, for their convenience. The hon. Member for Boston and Skegness said that the Bill should not be a deterrent
 to legitimate labour providers. It is important that the Bill be lean in terms of administration but adequately cover licensing and its enforcement. It does not deal with issues outside its scope that are the responsibility of other Departments. Members of the Committee have expressed concerns about the adequacy of enforcement. Again, I appreciate that those concerns go way beyond the licensing system.
 We are trying to create an antisocial behaviour order for gangmasters that encourages legitimate activity, makes that easy—fees will be involved, but they should be the minimum needed to do the job properly—and makes it unprofitable to operate outside the legitimate sector. That is why increased penalties for repeat offenders come into the frame. I make the comparison with the antisocial behaviour order because that is fairly simple to obtain but, if it is breached, the walls come tumbling down on the offender. The same is intended here. The focus will be on dealing immediately and quickly with those outside the licensing system, the real villains of the piece, the exploitative people who take part in all sorts of illegal activities—usually, a mixture of several. 
 Reference was again made to the overlap with other legislation, in particular employment agencies legislation. We considered that issue with some care. We could draw a careful line, so that neither piece of legislation overlapped the other but, as many hon. Members have said, there would be a danger that a gangmaster who wanted to operate without meeting the requirements of the Bill could register under the employment agencies legislation and thereby be exempted from the Bill. That is why we have made it clear that gangmaster activities by anyone, including those who have registered under the 1973 Act, will be caught by the Bill. Again, we want to allow legitimate activities, keeping administration to a minimum and drawing helpful lines, but to avoid the possibility that people will evade the intentions of the legislation because we have gone into too much detail, thereby creating unintended loopholes.

Andrew George: The Minister said earlier that we should avoid unintended loopholes, and that is right, but in his definition of agriculture he may be creating a loophole in relation to flower and bulb growers and packers. The closest we get to a definition that covers that is in new clause 3(3)(e), which refers to
''the use of land for market gardens or nursery grounds.''
 I am sure that those who wanted to find a loophole could say that that definition does not apply to large plantations of bulbs and flowers.

Alun Michael: I am grateful to the hon. Gentleman for raising the point in the way that he did, and I can reassure him on it. One advantage of using a definition that is used in other legislation is that we know how it applies. I can assure him that the activities that he spoke about are covered in the Bill.
 My hon. Friend the Member for West Renfrewshire made the point that the Bill applies to all agricultural work, including work in horticultural sector-associated packhouses, where many gangworkers are 
 employed. The gathering of shellfish has also been covered in the light of the tragic events at Morecambe bay. I can confirm that our intention is to introduce regulations to exclude some downstream processing activities, which partly addresses the point made by the hon. Member for Boston and Skegness. That will cover, for instance, cheese or butter making, bottling milk after pasteurisation, curing meats, smoking fish, making pâtés, canning produce, brewing, making ready meals, soup and sandwiches, to take a specific example that the hon. Gentleman raised. 
 If we tried to come up with a definition to cover all that, we would end up with complicated legislation, which is why we have gone for the wider definition. It will be helpful to assure the Committee of our intention to draft the secondary legislation and make it available to hon. Members and those in another place. We are clear about what we are doing: keeping the flexibility so that we can close any unintended loopholes quickly, while being specific in our actions and trying to avoid creating new burdens for business and farmers. We are trying to develop a system that is as simple as possible but is effective. In the drafting and definitions, we are trying to ensure that we can do that precisely. 
 I can also confirm that it will be our intention to exclude processing and packaging undertaken after the process has entered the retail distribution chain. That goes back to the issue of sandwiches. We have to discuss further the use of such regulations, and I am happy to undertake to do that with Committee members and the main stakeholders. We will continue the dialogue that has brought us to this point. At this stage, we do not intend to bring any more work within the scope of the legislation; the power to do that exists on a contingency basis. 
 My hon. Friend the Member for West Renfrewshire covered most of the points on new clauses 5 and 26. I agree that all workers, whoever they are, are entitled to protection from the exploitative activities of gangmasters. We have a duty to protect vulnerable workers from exploitation. I repeat my offer to provide greater detail on specific points, as I promised to my right hon. Friend the Member for Edinburgh, East and Musselburgh in relation to woodland, should there be issues on which Members want more information.

Mark Simmonds: The Minister is making a constructive response to some of the points that other Committee members and I have made. However, he has not addressed my points about gangmasters based abroad or using foreign bases to manipulate or exploit workers in the United Kingdom. I would be grateful if he could either make some general comments now or give a commitment to do so later in writing when he has a chance to consider the detail.

Alun Michael: I am sorry—the hon. Gentleman is correct. The intention is that gangmasters operating from abroad will come under the legislation. Enforcement will obviously be more difficult in those circumstances, but we do not intend that someone residing outside the UK should be able to escape the Bill's impact. In so far as one can enforce the law on
 someone outside the country, the provisions on enforcement, like those on confiscation, will apply. I hope that that satisfies the hon. Gentleman, but I am happy to confirm that to him in writing with more detail.
 Unless Committee members have any more specific points, I am happy to say that I strongly support the recommended changes.

Eric Illsley: Before I put the question on this clause, I will, in the words of the Clerk, break with parliamentary tradition and tell hon. Members exactly what is going on. We are dealing with this Bill in a slightly different way from most other Bills. The first five clauses will all be debated under clause stand part. No amendments to them will be moved. The new clauses will be dealt with towards the end of proceedings after we have dealt with clause 6.
 Question put and negatived.
Clause 1 disagreed to.Clause 2Requirement to hold a licence

Clause 2 - Requirement to hold a licence

Question proposed, That the clause stand part of the Bill.
The Chairman: With this it will be convenient to discuss the following: new clause 4—Acting as a gangmaster.
New clause 6—Prohibition of unlicensed activities.
New clause 12—Offences: acting as a gangmaster, being in possession of false documents etc.
Mr. Simmonds: I strongly support new clause 4(3). It is vital that we prevent gangmasters getting round the Bill and subcontracting to illegitimate gangmasters. That raises many issues, some of which will be discussed in relation to other new clauses.
It is important that the register is not available only at a particular office in the locality. It has to be accessible 24 hours a day—probably on the internet in this day and age—because of the, admittedly infrequent, necessity of getting labour in the middle of the night. Sometimes, the gangmaster on the first rung fulfils his initial obligations but cannot provide more labour, so he has to go to a subcontractor at very short notice. It is not always possible to wait until the morning, because crops may have to be taken out of the ground, or the supermarket might demand the produce, at very short notice.
Alun Michael: The hon. Gentleman raises important issues that will need to be covered in two ways: first, through regulations that will to be made and, secondly, through the establishment of the agency. We intend to engage people who are involved with the industry on the board, and use the liaison arrangements recommended in the Bill. This is an issue that everyone has raised. I am happy to assure the hon. Gentleman that, although some of the issues that he raises are not mentioned in the Bill, we regard them as important. Not standing in the way of the effective provision of labour by legitimate gangmasters is at the core of our implementation of the legislation.
Mr. Simmonds: I am grateful to the Minister for that extremely constructive intervention. I look forward to seeing the details in regulations.
Moving swiftly on, it is important that gangmasters and farmers be unable to circumvent the Bill through leaseback arrangements, whereby gangmasters pretend that they are operating as farmers but are not farmers in practice.
My concern about new clause 4 centres on subsection (5)(b), which mentions the use of workers to gather shellfish. Of course, I understand the sensitivity of that addition to the Bill, bearing in mind the terrible, tragic events of Morecambe bay. My problem is not with the nature of the provision, but with the fact that, as I understand it, the measure would catch small family businesses, such as one that consists of a father and mother employing their two sons. That, obviously, is not the operation of a gangmaster.
Alun Michael: I am happy to intervene to give the hon. Gentleman reassurance. First, he referred to leaseback. I believe that he is thinking of cases in which the gangmaster pretends to have become a farmer and to own the produce. That has been taken into consideration in the drafting of the Bill, and we are satisfied that such cases will not avoid its purposes and can be prevented.
The hon. Gentleman's second example involving a family has been raised by a number of people. It is exactly the sort of case that I mentioned earlier, where our intention would be to deal with it by exclusion. We need to discuss with the industry precisely how to do that, to make sure that we do not accidentally create a mechanism that encourages evasion. I am absolutely clear that the provisions as drafted will allow us to create exceptions or exemptions that deal with such anomalies. The drafting is designed to include such things because it is easier to draw a line around a subject through exemptions in the regulations than it is to have an over-complex Bill or over-complex definitions on its face.
Mr. Simmonds: I am grateful to the Minister for another constructive intervention. Judging by the way in which he is behaving, I hope that we will rattle through the Bill quickly, which is excellent. I have no desire to hold it up, but we must make sure that it is right and that it does not have negative, unnecessary or undesirable side effects.
New clause 12 is about offences. The first part of subsection (1) is clear enough: a gangmaster operating without a licence is committing an offence. However, the second part of the subsection states that a licence holder who breached the conditions of his licence would be committing an offence, which suggests that licence breaches are not in themselves an offence. I would be grateful for some clarification. Are there grounds—perhaps in other legislation—for revocation of the licence, as provided under new clause 9? Will the Minister outline all legal requirements that a gangmaster would have to meet to comply with the conditions of a licence? Will those conditions be on the face of the Bill, or set out in regulations?
Although a minor licence breach might not be worthy of classification as a criminal offence, surely major breaches should be. Will the Minister clarify how the choice will be made between prosecuting for offences under new clause 12 and revoking a licence detailed under new clause 9? Can both courses of action be taken? If one is taken as a priority, which will it be?
Alun Michael: The hon. Gentleman has raised some interesting points, which I am happy to say that we have considered in some depth. First, the whole point of having a licensing system that makes a difference is that as soon as the licence has been taken away, it is impossible for the individual to continue their activities. If a gangmaster whose licence has been revoked does anything, even if it would otherwise all be legitimate, he can be done for not having a licence. The system allows immediate disciplinary action to stop things happening.
I assure the hon. Gentleman that the revocation of a licence is potentially far more draconian a measure than it might first appear. In addition, there are heavier penalties for repeat offences. Those penalties mean that if, for instance, a gangmaster whose licence had been taken away went with another gang and was arrested and prosecuted, and he then did it again, the repetition of the offence would trigger the heavier penalties. In such a case, the Bill as we are now redrafting it will act as an antisocial behaviour order. That means that severe penalties will be available for the people that we really want to catch.
We do not want to create such a powerful disciplinary and legal mechanism for people who may have just slipped up and committed minor breaches. The requirements that will be placed in the licence need to be thought through during discussion with the industry and need to be agreed by the agency, but they will undoubtedly include some matters that we all would regard as a breach, simply as a means of saying, ''Look, you're not doing it properly. Do it this way in future.'' We need to make it clear our aim is to create a licensing system that keeps people who want to act within the law within the circle of the licence, which means that minor breaches will be neither here nor there. The distinction to be drawn is between those people and the villains. We want the villains to be outside the circle and we want to be able to act against them very quickly. I hope that that explains how the Bill will work.
There are other requirements in legislation. For instance, people have to fill in their tax returns and they have to pay tax. That is the way things operate—at least in general. If a company is in breach of the tax laws, it does not mean that it is closed down immediately. The Inland Revenue has its own ways of dealing with breaches and its own powers. If the issue is simply one of tax, it is dealt with in that way. If one of the villains is not only not paying tax, but employing illegal workers, or exploiting people by not paying them the minimum wage and so on, revoking the licence gives us a powerful opportunity to get a grip on the situation and close down their operation. 
That is why the Bill will be a much more powerful instrument than is appreciated.
Andrew George: The Minister paints a black or white picture. People are either villains, or acting as legitimate gangmasters. I suspect that some of the large organisations that we are talking about will have a legitimate licence while sending out teams that are not operating within the spirit of the law. I would like the Minister to clarify whether he thinks the Bill will be able to deal with such gangmasters.
Alun Michael: The hon. Gentleman makes a good point. If the breach of a licence—or loss of it—does not mean anything, that sort of activity could take place. There may be some legitimate and some illegitimate activities going on, perhaps under the aegis of the same organisation. However, if one group were acting illegally and not observing the code necessary to retain a licence, that would put the whole of the business at risk, not just one gang. There is a genuine incentive for such businesses in showing them that it is not worth trying to bend the rules at the edges because that could destroy their whole business by resulting in its being closed down. We must ensure that people who utterly disregard the law are clearly outside the ambit of the licensing system while not coming down like a ton of bricks on people who are genuinely providing services but get things slightly wrong at the edges.
There are judgments to be made, which is why it is essential to have people with knowledge of each aspect of the industry—people from farming, legitimate gangmasters, representatives of the trade unions and the enforcement agencies—all involved in the design and operation of the licence. The practicalities need to be flexible enough to ensure that we catch the right people but do not create burdens for those who are not the targets of such activity.
Over the years, there has been a reluctance to make the activity licensed because people do not want a process that is bureaucratic and costs a lot of money. We are designing the legislation in such a way that a fairly slim-line licensing system, which keeps the burden of licensing to a minimum, can make it unprofitable and impractical for people to operate outside the ambit of the law. That means helping in other aspects of enforcement—the sort of work that Operation Gangmaster is already tackling with some success—rather than creating bureaucratic edifices.
Making legislation that has the flexibility to deliver in practice is part of process. I am happy to discuss that and share drafts of documents with Committee members, as well as with the participants in the industry consortium, so that we get it right. I suggest that we are talking the same language of practicalities across the Committee.
Question put and negatived. 
 Clause 2 disagreed to.

Clause 3 - Administration and enforcement

Question proposed, That the clause stand part of the Bill.

Eric Illsley: With this it will be convenient to consider the following:
 New clause 1—The Gangmasters Licensing Authority. 
 New clause 2—Directions etc. by the Secretary of State. 
 New clause 7—Grant of licence. 
 New clause 8—General power of Authority to make rules. 
 New clause 9—Modification, revocation or transfer of licence. 
 New clause 10—Appeals. 
 New clause 11—Register of licences. 
 New clause 14—Offences: supplementary provisions. 
 New clause 15—Enforcement and compliance officers. 
 New clause 16—Powers of officers. 
 New clause 17—Entry by warrant. 
 New clause 18—Obstruction of officers. 
 New clause 19—Information relating to gangmasters. 
 New clause 20—Application of Act to bodies corporate. 
 New clause 21—Application of Act to unincorporated associations. 
 New clause 22—Application of Act to partnerships. 
 New clause 23—Annual report. 
 New schedule 1—The Authority: consequential amendments of enactments.

Mark Simmonds: I shall not go into great detail about the establishment of the gangmaster licensing authority, except to note, first, that it will be separate from DEFRA—it would be useful if the Minister explained why it was concluded that it should be separate from rather than an extension of a Department—and, secondly, that the authority will not be responsible for enforcement of the legislation. I understand that the Secretary of State will have powers to appoint enforcement officers from other Government bodies and agencies.
 I know that we are engaged in constructive debate today, and I do not want to be critical of past events, but I am deeply concerned about Operation Gangmaster and the lack of co-ordination between Departments in attempts to stop the exploitation of vulnerable workers, both legal and illegal. To date, those attempts have not been successful, and I want to ensure that the gangmaster licensing authority and whatever body is responsible for the enforcement of the licensing and regulation scheme will work together extremely closely, and that there will be sufficient resources to enforce the measures that are to be on the statute book. 
 New clause 8 deals with the power of the authority to make rules. I should like the Minister to clarify why the word ''rules'' is used, rather than ''conditions''. 
 What, if any, is the difference between the two? It might be my suspicious nature that makes me ask.

Alun Michael: The simple answer is that ''rules'' looked reasonable in that sentence. I do not believe that there is any great distinction between the two terms, although I shall check that for the hon. Gentleman.

Mark Simmonds: I am grateful for that response.
 I have great sympathy with a couple of sentences on this subject from the National Farmers Union. I hope that the Minister and his civil servants will take note of them. The NFU states: 
''It is important that the right balance is achieved with the rules, and that the rules relate directly to existing legislation. If the GLA introduced too many, too complex rules than was reasonably required for the purpose then the grant of licences could become cumbersome and bureaucratic''—
 we covered some of that argument before— 
''and of course increase the overall costs of the scheme and pitch licence fees upwards to excessive levels'',
 which might deter the legitimate supply of labour, as I pointed out. 
 That brings me neatly to the regulatory impact assessment, which suggests that the cost of an audit of a legitimate gangmaster who is meeting the legal obligations could be as much as £1,500. That is in addition to the administrative costs of processing and issuing the licence and maintaining the register, which could be a further £750. I understand that those figures are based on a two or three-year licence. I should like to understand why those costs are so high, particularly in comparison to those that apply under the Private Security Industry Act 2001, which total only £190. The disparity between the two figures is large. I, my constituents, businesses in the horticultural and agricultural sectors and legitimate gangmasters all wish to avoid penalising the latter with provisions that are over-burdensome—not only in terms of bureaucracy, but in terms of unnecessary cost. 
 New clause 8(2)(f) would allow the authority to grant provisional licences before it had been determined whether the requirements for the granting of a licence had been met. That unnerves me and some legitimate gangmaster operators who believe that some rogue operators may obtain licences, however temporary, and operate without meeting the relevant criteria. It would be wrong to allow that to happen, even if only for a limited time. Why cannot we have beginners criteria, which might be linked to the sending of tax and VAT returns to the Inland Revenue and Customs and Excise? 
 New clause 15 deals with enforcement. From reading the Bill, it is not clear to me who the enforcement officers will be. Will they be from Inland Revenue, Customs and Excise or the new merged body? Will they be immigration officers? Where will they come from, and who will fund their operations? Which Government Minister will be responsible for them and, ultimately, answerable to this House and the other place? How will the officers liaise with local police? I have consulted the police in Lincolnshire and they are enthusiastic about the Bill, provided that it is correct, but they want to make sure 
 that there is an understanding about how police will link with the enforcement operators. 
 I appreciate that that will become apparent in secondary legislation, but I am concerned that, at this stage, there seem to be no defined mechanisms or structures in place. Will the Minister provide assurances regarding the likely number of enforcement and compliance offices that will be required? Will the resources necessary to fund them be forthcoming? Where will that funding come from? I do not mean to be difficult, but, at the moment, there is a lack of co-ordination. Insufficient resources have been put in place to enforce the existing legislation. We need to make sure that that gap does not continue. 
 As the Minister said, we must catch those who continue to ignore the rules. That is far harder than penalising licensed operators for minor compliance issues, and it may involve considerable resources and manpower. Where will those resources and manpower emanate from?

Frank Dobson: Mr. Illsley, I am happy to be able to say without any doubt that your chairing was the most helpful piece of chairing that I have come across in nearly 25 years in the House. I also cannot help but observe the appropriateness of Room 9 being renamed the Wellington Room. Someone obviously had a sense of humour, as we are discussing the gathering of shellfish, agriculture and horticulture in a place named after the appropriate clothing.
 I would be grateful if the Minister confirmed that those to have powers of arrest will include not only the enforcement officers, but the usual people—the police—under the Bill or under general legislation. 
 I want to raise two other points. As I understand it, powers of arrest will apply only to someone who has not got a licence or who has a dodgy licence. There is no proposal that a power of arrest should be applied to someone who is wildly in breach of a licence, which might appropriately be an arrestable offence. Might someone who is obstructing enforcement and compliance officers in the exercise of their duties be arrested? Some of the minority of evil people involved in gangmaster activities are precisely the sort of people who would destroy important information in the period between the enforcement officer trying to get in and anybody laying hands on the information.

Colin Breed: In new clause 7(2), which relates to the period of grant, there is no mention of renewals. The clause talks about revocation, alterations and the like and the subsection says that the licence
''shall be granted for such period as the authority thinks fit.''
 However, because there is no mention of renewals, it suggests that one might be able to issue a licence for 25 or 30 years, or for life. Many of us would prefer a general presumption in favour of a maximum period of five years, so that renewals take place. It might be shorter than that for people who have to prove themselves or are brand new to the business, but those who have been operating for a while should have 
 to undergo a renewal or reappraisal, not least because they can provide more money through the renewal. 
 New clause 9(3) states that the licence 
''may be transferred with the written consent of the Authority''.
 Our experience of the transferability of licences has not been good. Some have acquired financial value and become transferable and marketable. I cannot understand why we are prepared to allow the transfer of a licence when all that is needed is a new licence. Any person, corporate body, organisation or partnership should apply for a new licence when they want one. I have become opposed to transferring licences, because licences and other rights that have for various reasons been transferred have caused us concern in many different spheres. Why do we need to worry about transferring licences when people could simply apply for a new licence? There is no need to provide for transferability.

Alun Michael: A lot of ground has been covered in a short time and I shall seek to do the same. The hon. Member for Boston and Skegness asked about the nature of the authority. We envisage a body in which the chair will be appointed by the Secretary of State through the normal appointments system and in which other members of the board—approximately 17 representatives—will be chosen for specific aspects of expertise. That would mean representation from the industry—farmers, growers and trade unions—and from Government. That would ensure that people on the board are involved in those bodies that enforce legislation relevant to the activities of gangmasters. We envisage a board that has practical experience to inform the decisions that it makes. The appointment of the chairman by the Secretary of State would be in line with the recognised procedures laid down by the Office of the Commissioner for Public Appointments.
 In terms of enforcement, the licensing body must, most importantly, create an environment for the licence and ensure that licence requirements are complied with. Another aspect of enforcement covers the activities of those who are not licensed—the villains outside the licensing system. We are considering the way in which enforcement will be exercised; a degree of enforcement from DEFRA might be required. 
 The power of arrest included in the Bill could be useful for organisations other than the licensing authority and DEFRA, because it establishes a clear line. It may be suspected, but not immediately apparent, that a variety of offences are being committed—for example, one may not know whether offences under health and safety legislation are taking place. However, one would immediately know whether the person has a licence to be a gangmaster; if they do not, there is the power to arrest them straight away. That creates a means of taking hold of the situation in, as my right hon. Friend the Member for Holborn and St. Pancras described them, the 5 o'clock mists of the countryside.

Mark Lazarowicz: Like those who have already spoken in the debate, I strongly support for the Bill.
 On the information that may be obtained through the activities of the new authority, is the Minister satisfied that if the authority's officers come across information that points not to a breach of this legislation, but to possible breaches of other legislation, that information could be passed to the appropriate authorities?

Alun Michael: Yes, absolutely. My hon. Friend might be aware that I have taken a great interest in the exchange of information, which, for instance, resulted in a specific clause in the Crime and Disorder Act 1998. I have carefully explored that point with officials and legal advisors to ensure that the licensing body will be able to undertake exchanges of information, particularly in relation to breaches of the law.
 The engagement of every aspect of the industry in the body that will oversee the activity, and the engagement of Government in that body, is the way to ensure that there is a genuine partnership and that the licensing organisation is fit for its purpose. That goes back to the general purposes of ensuring that appropriate provisions are in place and that a code of good practice and existing legislation are pursued effectively, but at minimum cost and with a minimum of regulatory burden.

Frank Dobson: Some of us suspect that we are in a ''may'' situation when we would rather be in a ''shall'' situation, so that if information was discovered, the new organisation would be obliged to pass it on and it would not be at its discretion.

Alun Michael: I am delighted to say that I am entirely at one with my right hon. Friend. I am happy to put it clearly on the record that the provisions as drafted include the power of direction in the event of any doubt. It is our intention that ''shall'' rather than ''may'' is the way in which the organisation will operate.
 The regulatory impact assessment is based on the best available knowledge, gained, for example, from examining the operation of the Ethical Trading Initiative, which is a voluntary initiative undertaken by legitimate gangmasters and the business. If, in time, it becomes possible to slim down the requirements and therefore the burden on business, we would be happy to see that happen. We have the sort of partnership of organisations and individuals that points in that direction, but we have to base RIA figures on the best available knowledge now. 
 The hon. Member for Boston and Skegness referred to temporary licences or beginners arrangements, which are entirely possible under the legislation. The reason for putting enforcement in the hands of the Secretary of State is that she would be able to authorise the agency and others to use such powers. That means that the usefulness of the legislation extends beyond the enforcement of the licence. That is something that we will discuss with enforcement organisations—for example, we are planning a discussion with the police. The arrangements for enforcement liaison are in the Bill, so that there is a mechanism for ensuring that there is complementary 
 enforcement of the provisions in this Bill and other legislation. 
 My right hon. Friend the Member for Holborn and St. Pancras asked about the powers of arrest in relation to someone who was wildly in breach of the provisions. I rather suspect that in those circumstances the individual concerned would be committing one of the many offences of exploitation, to which we have already referred, and would therefore be breaching other legislation. As far as the licences are concerned, an individual could commit the offences once, but breaching the licence would mean that they would be acting illegally if they undertook any activity, even if they ensured that the activity was within the ambit of the law. The repeat offences and the increased penalties would then kick in. I assure my right hon. Friend that we are creating a powerful instrument, provided that what I have described is understood. The individuals concerned may, of course, be committing arrestable offences under existing legislation and it is right that they should be arrested if that is the case. 
 The hon. Member for South-East Cornwall (Mr. Breed) referred to the period of a licence and to renewal. That is not the sort of thing that needs to be in the Bill. Our initial thinking is that the licence might run for three years, but, again, that is open to discussion with the industry and I am happy to hear the views of colleagues as well. As far as the transfer of licences is concerned, we can look at pub licences or transfers of a business, from father to son or to a new proprietor. We do not want to create a new burden for the business by making people submit a new application and thereby pay the full licensing fee. That would add to the cost. I am certain that the issues about which the hon. Gentleman expressed concern can be managed through the regulations. 
 If hon. Members would like further detail on any of the points that I have covered fairly briefly, I shall be happy to provide it.

Frank Dobson: I would like to return to the question whether obstructing the enforcement officers would be an arrestable offence.

Alun Michael: My understanding is that obstruction of enforcement would fall under existing legislation. However, I am not absolutely certain about that, so I shall look into it and write to my right hon. Friend.

Eric Illsley: Order. The Committee will now stand suspended until 10 minutes to 5. If there is a Division in the House at the end of that period, the Committee will be suspended for a further 15 minutes, until 5 minutes past 5.
 Sitting suspended. 
 On resuming—

Mark Simmonds: I am aware that the Committee wants to rattle through the remaining new clauses and I hope that the Minister will forgive me for coming back on some points that has not addressed to my satisfaction. Will he now, or in writing, tell me why the
 assessment of regulatory costs for the implementation of the licensing scheme are so much higher than those that the security industry had to bear under the security legislation, which I understand was £190? That may be a function of the different industries that are being regulated. If so, I would like more information on why the disparity is so great.
 There are other Bills and other immigration legislation in which powers such as those proposed exist, but they are not being enforced properly, which is why there is a loophole. The Minister did not answer to my satisfaction two key points on the enforcement of the Bill, which will be essential to its success: first, how many enforcement officers will be put in place and, secondly, who will fund them and how will they link with other authorities such as the police? Will the funding be from DEFRA or from the cost of the licence? I assume that it will not be from the latter, because of the desire to keep the cost of the licence to a minimum. 
 My final point, which I would like the Minister to address now or in writing, is about the forging of IDs and licences. As he knows, there is a huge market in forgery. Last week, I was at Boston police station, which has enormous numbers of forged passports and ID cards. Sophisticated criminal gangs, which have the ability to carry out very good forgeries, are involved in these rackets. I want to ensure that that does not happen in the case of these licences. To ensure that they cannot be forged, it may be possible to use technology that has been discussed in connection with ID cards.

Alun Michael: I shall try to satisfy the hon. Gentleman, but I cannot respond to his point on the comparison with the licensing charges for the security industry scheme, because I do not know the details of it. I was responsible for that area of policy when my party was in opposition, but that was some time ago and my knowledge of it is a little out of date. However, I am happy to consider the arrangements under the legislation that he mentioned and to write to him to deal with the comparison.
 The hon. Gentleman also raised several issues relating to enforcement—issues of the sort where the question is simple, but the answer tends to be complex. The Bill's purpose is to set in place licensing arrangements and to make provision for enforcement and prosecuting those who breach the licence requirements or operate without a licence. We want to ensure that the costs that fall on the industry are those that relate to the licensing activity. We do not want the industry to be asked to bear the costs of other enforcement in respect of those who are not legitimate gangmasters. That is why the answer is slightly complicated. The licensing authority needs the powers to do its job, but DEFRA might undertake, or provide finance for, additional related enforcement activities. The offences in the Bill may be useful to those seeking to enforce other parts of the law and to the police in general. 
 That is why we have drafted the provisions in wide terms and said that the Secretary of State can 
 authorise the power to prosecute. We are thereby providing flexibility to ensure that we get the best out of the legislation by putting the least burden on the licensing operation and therefore on the industry. That relates directly to the issues raised by the hon. Gentleman and the opinions expressed by the NFU and others. The trade union side is equally keen that there should not be an excessive burden that almost penalises a licensed gangmaster. We want this to be easy and as simple as possible to operate within the law. We also want to make things as difficult as possible for anyone who thinks of operating outside the law, whether outside the licensing system or in the variety of other ways that have caused this issue to become so important to hon. Members. 
 Responsibility for financing falls to DEFRA, so clearly we will have to bear the cost of establishing the agency. We will seek cost recovery from the licensing system once it is up and running, but we cannot achieve that on the first day. The obligation rests with DEFRA. As with all other non-departmental public bodies and agencies, there is an annual arrangement with the body to provide the resources. It can advise the Secretary of State on its experience of operating within the legislation and so on. I cannot peer into a crystal ball and give the hon. Gentleman figures, but that is not how we are approaching the issue—we are not considering it top-down. This is about working with industry and enforcement agencies to ensure that we create a system that is fit for purpose.

Mark Simmonds: The Minister is being extremely helpful and constructive yet again. Am I right in thinking that enforcement will be the responsibility of DEFRA and that therefore the Secretary of State will be responsible for enforcement as well as the other matters, such as the GLA?

Alun Michael: If I interpret the question correctly, yes, because the responsibility for the legislation, its use and the establishment of the agency is DEFRA's. We are setting up a Government agency, but we seek to share the development of the policy and the mechanisms with an industry that knows its own business. That is where we are trying to be intelligent in squaring the circle. We want to ensure that the agency and all that it does both have Government underpinning and authority, and that the licensing system is a legal requirement and is underpinned by the legislation. DEFRA takes responsibility for that.
 What sometimes confuses people, for instance, is the fact that there will be a relationship between the licensing system, which creates a dividing line between the legitimate and the non-legitimate, and the work of Operation Gangmaster. The hon. Gentleman was a little dismissive of that work, but if he checks the newspaper cuttings from recent weeks he will see that there have been several serious successes and prosecutions. The activities involved in such operations go on throughout the country but remain invisible until people are arrested. Even then, there tends to be a bit of a delay until the cases come to court, so there is a tailback in terms of effectiveness. Nevertheless, I can assure him of Ministers' enthusiasm for such activities. Indeed, the support 
 and encouragement that I have received from Ministers in other Departments in relation to the Bill shows the will to make enforcement effective.

Nick Brown: I understand that the licensing scheme and the policy surrounding it are, quite properly, matters for DEFRA, but how will the enforcement responsibilities that DEFRA is accepting sit alongside those of the Minister at the Department for Work and Pensions who is taking a co-ordinating role on such matters and on Operation Gangmaster in particular?

Alun Michael: It is fair to say that the purpose of Operation Gangmaster is to deal with the villains of the piece, and different Departments clearly have an interest in different aspects of enforcement. For instance, my Department has an interest in the agricultural wages requirements, while the Department for Work and Pensions has an interest in relation to the minimum wage and employment issues generally. The Inland Revenue has more than a passing interest in people paying their taxes. We are all concerned about health and safety at work, although the Health and Safety Executive has responsibility for that.
 The point is that legitimate businesses sometimes breach one or other of the relevant pieces of legislation, while the villains of the piece have no regard for any of them. There needs to be co-ordination across government so that we can use whichever instrument is appropriate, or indeed all of them, to get a grip on things. Operation Gangmaster draws together a team of people from across government to tackle a particular investigation and the ensuing prosecution. 
 The existence of a licensing system, as well as the ability both to revoke the licences of organisations that play fast and loose and to prosecute gangmasters who operate without a licence, give us a new opportunity to target such people. The licensing authority targets people to ensure that they operate as legitimate gangmasters, but the power to prosecute is useful beyond simply enforcing the licensing system. We should consider not only the licensing authority but others having the opportunity to prosecute.

Nick Brown: Which Minister will take the lead in enforcing the Act?

Alun Michael: The Secretary of State at DEFRA will have responsibility for that. The provisions will complement existing opportunities and create new ones for those who enforce other legislation. The relationship between the enforcement of these and other provisions will lead us to look for experience on the board to promote the usefulness of the licensing system. The connection with other breaches of the law, particularly where the villains are concerned, has resulted in the proposition of an enforcement liaison group to ensure that things are pulled together. As my right hon. Friend suggested, responsibility for leading the co-ordination of Operation Gangmaster activities clearly lies with the DWP. That will not only add significantly to the armoury of offences for which
 prosecution can take place, but change the geography of enforcement by making it much easier to get a grip.

Geraldine Smith: Let me describe a hypothetical situation. As an MP, I might be alerted to the operations of gangmasters who are, perhaps, in breach of health and safety requirements, exploiting illegal immigrants, involved in tax evasion or engaging in any of a range of activities. If I have difficulty in getting local agencies to work together, which Minister should I approach to kick off the operation to check the licences and to liaise with health and safety officials and other agencies, thereby ensuring that something happens?

Alun Michael: In the first instance, the question appears simple. We want to make it as easy as possible for people to get things done, whether they are Members of Parliament or members of the public. A member of the public will not ask under which piece of legislation he is making an inquiry; he will have a problem that he wants to draw to somebody's attention and will want to know how to do it. At a recent meeting, in response to a question from my hon. Friend, I undertook to consider how we can ensure that there is one point to which people can go for information on licensing and other gangmaster issues. I repeat that undertaking.
 If there is a bit of a problem with the way in which a licence is working, my hon. Friend should come to me or to another DEFRA Minister. However, when it comes to enforcement issues and trying to catch villains, we shall ensure that the way the Bill is stitched in allows people to get to the right place without having to make half a dozen inquiries. 
 It is also important that agencies with good reasons for wanting answers should be able to find out pretty quickly whether somebody is a legitimate gangmaster, just as the police can now check a car registration number immediately, rather than having to send off a form and wait three weeks. We shall consider how to deal with that, too. 
 The hon. Member for Boston and Skegness raised the matter of the ability of individuals to prove their identity. That is very relevant if there is a question about which individuals are authorised to work in this country. Work is under way in a number of Departments, under a Home Office lead, to establish a simple system to deal with authorisation to work. That ties in with proof of identity and proof of authority, which will be necessary if the system is to work. I am going beyond the detail that needs to be in the Bill, but I assure the hon. Gentleman that the matter is on the agenda and being addressed. 
 Finally, there are matters on which the detail in the Bill should not pre-empt decisions that might be made by the agency's board—or the shadow board, which we want to establish as soon as possible—as we want to use the knowledge of the industry. We are doing that by consulting with the consortium and with the Association of Labour Providers. Much of that has to be an iterative process. I do not think that there is any disagreement over the practicalities that need to be dealt with. 
 I hope that with those assurances, and the offer to go into any further detail that hon. Members wish, the Committee will agree to the measures proposed. 
 Question put and negatived.
Clause 3 disagreed to.Clause 4Obligations of principals

Clause 4 - Obligations of principals

Question proposed, That the clause stand part of the Bill.
The Chairman: With this it will be convenient to discuss new clause 13—Offences: entering into arrangements with gangmasters.
Mr. Simmonds: I have a few, brief points to make about new clause 13. Its provisions are essential to the Bill and therefore require clarification, because they are causing a great deal of concern among the farmers and owners of packhouses who use the gangmaster structure to provide much-needed casual labour at short notice.
It is essential that new clause 13 be included in some form, because otherwise the legislation will not be effective. However, I seek assurances from the Minister: although the provisions are an essential component in making the law effective, we must ensure that employers who have done their best to check the legitimacy of a gangmaster are not subject to prosecution if a rogue gangmaster has claimed to be legitimate or has provided good-quality forged documents that have convinced the employer of that gangmaster's legitimacy.
New clause 13(2) states that the employer must take ''all reasonable steps'' to satisfy himself that the gangmaster has a valid licence. There is some nervousness among employers about the word ''all''. Can the Minister clarify its meaning in this context?
I welcome the additional provision introduced by subsection (3), which allows the Secretary of State to make regulations to define what constitutes ''reasonable steps'', but I ask the Minister to ensure that those regulations will be subject to consultation. It is essential that the ''reasonable steps'' to be taken are practicable, because there are obvious limits.
I alluded earlier to the need for an employer to be able to validate a gangmaster's licence, even in the early hours of the morning in a field. The licence must therefore be available through the internet. What steps must employers take to ensure that the gangmaster has an up-to-date licence with no special conditions, and how will the employer ensure that the licence that he is shown is current and has not been revoked 24 hours previously? If a licence lasts for longer than a brief period—two or three years—someone may still have that licence in their possession even if it has been revoked.
Alun Michael: On the last point, the authorisation that comes with the licence does not necessarily mean that identification has to have the same time scale. The question of identification of an individual needs to be 
examined. In this place, for example, passes are issued for variable periods for a variety of reasons. That experience may be used to inform our consideration of the matter, although I am not sure that the House of Commons is necessarily to be regarded as a gangmaster. However, the Whips on some occasions—No, I will not go there.
To a great extent, the hon. Gentleman has answered his own question, and I am happy to confirm that his understanding is correct. The new clause makes it clear that everyone in the food chain has a responsibility to ensure that they are dealing with a reputable and licensed operator. When a person fails to discharge that responsibility, they will commit an offence under the proposed legislation.
As the hon. Gentleman suggests, however, we have the scope to make regulations to clarify the appropriate action for a labour user to take in checking whether a gangmaster is licensed. That will almost certainly include making a register check and a requirement that they see the original licensing documentation. However, until the authority has established the licensing procedures, it is not possible to say precisely what form the regulations will take.
I reiterate the point that the intention is to involve employers in the board and that they should be engaged in the design of the requirements that will be included in the legislation.
I can confirm that my understanding of what we need to do is along the lines of what the hon. Gentleman is asking us to do. The purpose must be to make it easier for employers to comply with the law. We should not have unrealistic expectations and ask them to fulfil vague obligations that are not clear, simple or practical. Our intention is that the issue will be dealt with in the regulations and as the agency takes form.
Mr. Simmonds: I thank the Minister for that answer. I have one plea: will he ensure that the structures that are put in place by the GLA or that come through in the regulations apply not only to the first gangmaster in the chain but to all the subcontractors below that gangmaster? Thought needs to be given as to whether the employer or the first gangmaster in the chain is responsible for ensuring that all subcontractors are licensed and legitimate.
Alun Michael: I can confirm that that is my understanding and that the legislation allows for that to happen. We need to ensure that it is clear what the employer who is using gang labour has to do to comply with the law. I accept that it is important for that to be set out clearly. However, I make a plea for us not to start using initials. Neither officials nor I have ever knowingly used the initials ''GLA''. As far as I am concerned, they mean the Greater London authority. It is not necessary for us to refer to the licensing organisation by its initials, as that could raise some confusion in certain quarters.
Question put and negatived. 
 Clause 4 disagreed to. 
 Clause 5 disagreed to.

Clause 6 - Short title, commencement and extent

Amendments made: No. 6, in 
clause 6, page 4, line 9, leave out subsection (2).
 No. 7, in 
clause 6, page 4, line 12, leave out from 'England' to end and insert 
 'and Wales, Scotland and Northern Ireland'.—[Jim Sheridan.]
 Clause 6, as amended, ordered to stand part of the Bill.

New clause 1 - The Gangmasters Licensing Authority

'(1) There shall be a body known as the Gangmasters Licensing Authority (in this Act referred to as ''the Authority''). 
 (2) The functions of the Authority shall be— 
 (a) to carry out the functions relating to licensing that are conferred on it by this Act, 
 (b) to ensure the carrying out of such inspections as it considers necessary of persons holding licences under this Act, 
 (c) to keep under review generally the activities of persons acting as gangmasters, 
 (d) to supply information held by it to specified persons in accordance with the provisions of this Act, 
 (e) to keep under review the operation of this Act, and 
 (f) such other functions as may be prescribed in regulations made by the Secretary of State. 
 (3) The Authority may do anything that it considers is calculated to facilitate, or is incidental or conducive to, the carrying out of any of its functions. 
 (4) The Authority shall not be regarded— 
 (a) as the servant or agent of the Crown, or 
 (b) as enjoying any status, immunity or privilege of the Crown, 
 and the property of the Authority shall not be regarded as property of, or property held on behalf of, the Crown. 
 (5) The Secretary of State may by regulations make provision as to— 
 (a) the status and constitution of the Authority, 
 (b) the appointment of its members, 
 (c) the payment of remuneration and allowances to its members, and 
 (d) such other matters in connection with its establishment and operation as he thinks fit. 
 (6) Schedule (The Authority: consequential amendments of enactments) amends certain enactments in consequence of the establishment of the Authority.'.—[Jim Sheridan.]
 Brought up, read the First and Second time, and added to the Bill.

New clause 2 - Directions etc. by the Secretary of State

'(1) In carrying out its functions the Authority shall comply with any general or specific directions given to it in writing by the Secretary of State. 
 (2) Before giving any such directions the Secretary of State shall consult the Authority. 
 (3) The Authority shall provide the Secretary of State with such information about its activities as he may request.'.—[Jim Sheridan.]
 Brought up, read the First and Second time, and added to the Bill.

New clause 3 - Work to which this Act applies

'(1) The work to which this Act applies is— 
 (a) agricultural work, 
 (b) gathering shellfish, and 
 (c) processing or packaging— 
 (i) any produce derived from agricultural work, or 
 (ii) shellfish, fish or products derived from shellfish or fish. 
 This is subject to any provision made by regulations under subsection (5) below and to section (Territorial scope of application) (territorial scope of application). 
 (2) In subsection (1)(a) ''agricultural work'' means work in agriculture. 
 (3) In this Act ''agriculture'' includes— 
 (a) dairy-farming, 
 (b) the production for the purposes of any trade, business or other undertaking (whether carried on for profit or not) of consumable produce, 
 (c) the use of land as grazing, meadow or pasture land, 
 (d) the use of land as an orchard or as osier land or woodland, and 
 (e) the use of land for market gardens or nursery grounds. 
 In paragraph (b) ''consumable produce'' means produce grown for sale, consumption or other use after severance from the land on which it is grown. 
 (4) In this Act ''shellfish'' means crustaceans and molluscs of any kind, and includes any part of a shellfish and any (or any part of any) brood, ware, halfware or spat of shellfish, and any spawn of shellfish, and the shell, or any part of the shell, of a shellfish. 
 (5) The Secretary of State may by regulations make provision— 
 (a) excluding work of a prescribed description from being work to which this Act applies; 
 (b) including work of the following nature as being work to which this Act applies— 
 (i) the gathering (by any manner) of wild creatures, or wild plants, of a prescribed description and the processing and packaging of anything so gathered, and 
 (ii) the harvesting of fish from a fish farm (within the meaning of the Diseases of Fish Act 1937).'.—[Jim Sheridan.]
 Brought up, read the First and Second time, and added to the Bill.

New clause 4 - Acting as a gangmaster

'(1) This section defines what is meant in this Act by a person acting as a gangmaster. 
 (2) A person (''A'') acts as a gangmaster if he supplies a worker to do work to which this Act applies for another person (''B''). 
 (3) For the purposes of subsection (2) it does not matter— 
 (a) whether the worker works under a contract with A or is supplied to him by another person, 
 (b) whether the worker is supplied directly under arrangements between A and B or indirectly under arrangements involving one or more intermediaries, 
 (c) whether A supplies the worker himself or procures that the worker is supplied, 
 (d) whether the work is done under the control of A, B or an intermediary, 
 (e) whether the work done for B is for the purposes of a business carried on by him or in connection with services provided by him to another person. 
 (4) A person (''A'') acts as a gangmaster if he uses a worker to do work to which this Act applies in connection with services provided by him to another person. 
 (5) A person (''A'') acts as a gangmaster if he uses a worker to do any of the following work to which this Act applies for the purposes of a business carried on by him— 
 (a) harvesting or otherwise gathering agricultural produce following— 
 (i) a sale, assignment or lease of produce to A, or 
 (ii) the making of any other agreement with A, 
 where the sale, assignment, lease or other agreement was entered into for the purpose of enabling the harvesting or gathering to take place; 
 (b) gathering shellfish; 
 (c) processing or packaging agricultural produce harvested or gathered as mentioned in paragraph (a). 
 In this subsection ''agricultural produce'' means any produce derived from agriculture. 
 (6) For the purposes of subsection (4) or (5) A shall be treated as using a worker to do work to which this Act applies if he makes arrangements under which the worker does the work— 
 (a) whether the worker works for A (or for another) or on his own account, and 
 (b) whether or not he works under a contract (with A or another). 
 (7) Regulations under section (Work to which this Act applies)(5)(b) may provide for the application of subsections (5) and (6) above in relation to work that is work to which this Act applies by virtue of the regulations.'.—[Jim Sheridan.]
 Brought up, read the First and Second time, and added to the Bill.

New clause 5 - Territorial scope of application

'(1) The work to which this Act applies is work— 
 (a) in the United Kingdom, 
 (b) on any portion of the shore or bed of the sea, or of an estuary or tidal river, adjacent to the United Kingdom, whether above or below (or partly above and partly below) the low water mark, or 
 (c) in UK coastal waters. 
 (2) In subsection (1)(c) ''UK coastal waters'' means waters adjacent to the United Kingdom to a distance of six miles measured from the baselines from which the breadth of the territorial sea is measured. 
 In this subsection ''miles'' means international nautical miles of 1,852 metres. 
 (3) The provisions of this Act apply where a person acts as a gangmaster, whether in the United Kingdom or elsewhere, in relation to work to which this Act applies.'.—[Jim Sheridan.]
 Brought up, read the First and Second time, and added to the Bill.

New clause 6 - Prohibition of unlicensed activities

'(1) A person shall not act as a gangmaster except under the authority of a licence. 
 (2) Regulations made by the Secretary of State may specify circumstances in which a licence is not required.'.—[Jim Sheridan.]
 Brought up, read the First and Second time, and added to the Bill.

New clause 7 - Grant of licence

'(1) The Authority may grant a licence if it thinks fit. 
 (2) A licence shall describe the activities authorised by it and shall be granted for such period as the Authority thinks fit. 
 (3) A licence authorises activities— 
 (a) by the holder of the licence, and 
 (b) by persons employed or engaged by the holder of the licence who are named or otherwise specified in the licence. 
 (4) In the case of a licence held otherwise than by an individual, the reference in subsection (3)(a) to activities by the holder of the licence shall be read as a reference only to such activities as are mentioned in whichever of the following provisions applies— 
 section (Application of Act to bodies corporate) (2) (body corporate); 
 section (Application of Act to unincorporated associations) (2) (unincorporated association); 
 section (Application of Act to partnerships) (4) (partnership that is regarded as a legal person under the law of the country or territory under which it is formed). 
 (5) A licence shall be granted subject to such conditions as the Authority considers appropriate.'.—[Jim Sheridan.]
 Brought up, read the First and Second time, and added to the Bill.

New clause 8 - General power of Authority to make rules

'(1) The Authority may make such rules as it thinks fit in connection with the licensing of persons acting as gangmasters. 
 (2) The rules may, in particular— 
 (a) prescribe the form and contents of applications for licences and other documents to be filed in connection with applications; 
 (b) regulate the procedure to be followed in connection with applications and authorise the rectification of procedural irregularities; 
 (c) prescribe time limits for doing anything required to be done in connection with an application and provide for the extension of any period so prescribed; 
 (d) prescribe the requirements which must be met before a licence is granted; 
 (e) provide for the manner in which the meeting of those requirements is to be verified; 
 (f) allow for the grant of licences on a provisional basis before it is determined whether the requirements for the grant of a licence are met and for the withdrawal of such licences (if appropriate) if it appears that those requirements are not met; 
 (g) prescribe the form of licences and the information to be contained in them; 
 (h require the payment of such fees as may be prescribed or determined in accordance with the rules; 
 (i) provide that licences are to be granted subject to conditions requiring the licence holder— 
 (i) to produce, in prescribed circumstances, evidence in a prescribed form of his being licensed, and 
 (ii) to comply with any prescribed requirements relating to the recruitment, use and supply of workers. 
 (3) The Authority must consult the Secretary of State before making any rules about fees. 
 (4) In subsection (2) ''prescribed'' means prescribed by the rules.'.—[Jim Sheridan.]
 Brought up, read the First and Second time, and added to the Bill.

New clause 9 - Modification, revocation or transfer of licence

'(1) The Authority may by notice in writing to the licensee modify or revoke any licence granted to him (including any of the conditions of that licence)— 
 (a) with the consent of the licensee, or 
 (b) where it appears to him that a condition of the licence or any requirement of this Act has not been complied with. 
 (2) The modifications that may be made include one suspending the effect of the licence for such period as the Authority may determine. 
 (3) A licence may be transferred with the written consent of the Authority and in such other cases as may be determined by the Authority.'.—[Jim Sheridan.]
 Brought up, read the First and Second time, and added to the Bill.

New clause 10 - Appeals

'(1) The Secretary of State shall by regulations make provision for an appeal against any decision of the Authority— 
 (a) to refuse an application for a licence, 
 (b) as to the conditions to which the grant of the licence is subject, 
 (c) to refuse consent to the transfer of a licence, or 
 (d) to modify or revoke a licence. 
 (2) The regulations shall make provision— 
 (a) for and in connection with the appointment of a person to hear and determine such appeals (including provision for the payment of remuneration and allowances to such a person), and 
 (b) as to the procedure to be followed in connection with an appeal.'.—[Jim Sheridan.]
 Brought up, read the First and Second time, and added to the Bill.

New clause 11 - Register of licences

'(1) The Authority shall establish and maintain a register of persons licensed under this Act. 
 (2) The register shall contain such particulars as the Authority may determine of every person who for the time being holds a licence or whose activities are authorised by a licence (whether or not they are named in the licence). 
 (3) The Authority shall ensure that appropriate arrangements are in force for allowing members of the public to inspect the contents of the register.'.—[Jim Sheridan.]
 Brought up, read the First and Second time, and added to the Bill.

New clause 12 - Offences: acting as a gangmaster, being in possession of false documents etc.

'(1) A person commits an offence if he acts as a gangmaster in contravention of section (Prohibition of unlicensed activities) (prohibition of unlicensed activities). 
 For this purpose a person acting as a gangmaster does not contravene section(Prohibition of unlicensed activities) by reason only of the fact that he breaches a condition of the licence which authorises him to so act. 
 (2) A person commits an offence if he has in his possession or under his control— 
 (a) a relevant document that is false and that he knows or believes to be false, 
 (b) a relevant document that was improperly obtained and that he knows or believes to have been improperly obtained, or 
 (c) a relevant document that relates to someone else, 
 with the intention of inducing another person to believe that he or another person acting as a gangmaster in contravention of section (Prohibition of unlicensed activities) is acting under the authority of a licence. 
 (3) A person guilty of an offence under subsection (1) or (2) is liable on summary conviction— 
 (a) in England and Wales, to imprisonment for a term not exceeding twelve months, or to a fine not exceeding the statutory maximum, or to both; 
 (b) in Scotland or Northern Ireland, to imprisonment for a term not exceeding six months, or to a fine not exceeding the statutory maximum, or to both. 
 In relation to an offence committed before the commencement of section 154(1) of the Criminal Justice Act 2003, for ''twelve months'' in paragraph (a) substitute ''six months''. 
 (4) A person guilty of an offence under subsection (1) or (2) is liable on conviction on indictment to imprisonment for a term not exceeding ten years, or to a fine, or to both. 
 (5) For the purposes of this section— 
 (a) except in Scotland, a document is false only if it is false within the meaning of Part 1 of the Forgery and Counterfeiting Act 1981 (see section 9(1) of that Act), and 
 (b) a document was improperly obtained if false information was provided, in or in connection with the application for its issue or an application for its modification, to the person who issued it or (as the case may be) to a person entitled to modify it, 
 and references to the making of a false document include references to the modification of a document so that it becomes false. 
 (6) In this section ''relevant document'' means— 
 (a) a licence, or 
 (b) any document issued by the Authority in connection with a licence.'.—[Jim Sheridan.]
 Brought up, read the First and Second time, and added to the Bill.

New clause 13 - Offences: entering into arrangements with gangmasters

'(1) A person commits an offence if— 
 (a) he enters into arrangements under which a person (''the gangmaster'') supplies him with workers or services, and 
 (b) the gangmaster in supplying the workers or services contravenes section (Prohibition of unlicensed activities) (prohibition of unlicensed activities). 
 (2) In proceedings against a person for an offence under subsection (1) it is a defence for him to prove that he— 
 (a) took all reasonable steps to satisfy himself that the gangmaster was acting under the authority of a valid licence, and 
 (b) did not know, and had no reasonable grounds for suspecting that the gangmaster was not the holder of a valid licence. 
 (3) The Secretary of State may by regulations make provision as to what constitutes ''reasonable steps'' for the purposes of subsection (2)(a). 
 (4) A person guilty of an offence under subsection (1) is liable— 
 (a) on summary conviction in England and Wales, to imprisonment for a term not exceeding 51 weeks, or to a fine not exceeding the statutory maximum, or to both, 
 (b) on summary conviction in Scotland or Northern Ireland, to imprisonment for a term not exceeding six months, or to a fine not exceeding the statutory maximum, or to both. 
 In relation to an offence committed before the commencement of section 281(5) of the Criminal Justice Act 2003, for ''51 weeks'' in paragraph (a) substitute ''six months''.'.—[Jim Sheridan.]
 Brought up, read the First and Second time, and added to the Bill.

New clause 14 - Offences: supplementary provisions

'(1) An enforcement officer (see section (Enforcement and compliance officers)) has the powers of arrest mentioned in subsection (2) (in addition to powers under section 24(4) and (5) of the Police and Criminal Evidence Act 1984) in relation to any of the following offences— 
 (a) an offence under section (Offences: acting as a gangmaster, being in possession of false documents etc.) (1) or (2), 
 (b) conspiring to commit any such offence, 
 (c) attempting to commit any such offence, 
 (d) inciting, aiding, abetting, counselling or procuring the commission of any such offence. 
 (2) Those powers are as follows— 
 (a) if he has reasonable grounds for suspecting that such an offence has been committed, he may arrest without warrant anyone whom he has reasonable grounds for suspecting to be guilty of the offence; 
 (b) he may arrest without warrant— 
 (i) anyone who is about to commit such an offence; 
 (ii) anyone whom he has reasonable grounds for suspecting to be about to commit such an offence. 
 (3) Subsections (1) and (2) do not apply in Scotland. 
 (4) In Schedules 2, 4 and 5 to the Proceeds of Crime Act 2002, after paragraph 9 insert— 
 ''9A An offence under section (Offences: acting as a gangmaster, being in possession of false documents etc.) (1) or (2) of the Gangmasters (Licensing) Act 2004 (acting as a gangmaster other than under the authority of a licence, possession of false documents etc.).''.'.—[Jim Sheridan.]
 Brought up, read the First and Second time, and added to the Bill.

New clause 15 - Enforcement and compliance officers

'(1) The Secretary of State may appoint officers (''enforcement officers'') to act for the purposes of this Act— 
 (a) in enforcing the provisions of section (Prohibition of unlicensed activities) (prohibition of unlicensed activities), and 
 (b) in taking action in circumstances in which it appears that an offence under section (Offences: entering into arrangements with gangmasters) (persons entering into arrangements with gangmasters) has been, is being, or may be committed. 
 (2) The Secretary of State may, instead of or in addition to appointing enforcement officers under subsection (1), make arrangements with a relevant authority for officers of that authority to be enforcement officers. 
 (3) The following are relevant authorities for this purpose— 
 (a) the Authority, 
 (b) any Minister of the Crown or government department, 
 (c) the National Assembly for Wales, 
 (d) the Scottish Ministers, 
 (e) any body performing functions on behalf of the Crown. 
 (4) The Authority may appoint officers (''compliance officers'') to act for the purposes of this Act in verifying, from time to time or in such circumstances as the Authority may determine, compliance by a licence holder with the conditions of the licence. 
 (5) When acting for the purposes of this Act, an enforcement officer or a compliance officer shall, if so required, produce some duly authenticated document showing his authority to act. 
 (6) If it appears to an enforcement officer or a compliance officer that any person with whom he is dealing while acting for the purposes of this Act does not know that he is an officer so acting, the 
officer shall identify himself as such to that person.'.—[Jim Sheridan.]
 Brought up, read the First and Second time, and added to the Bill.

New clause 16 - Powers of officers

'(1) An enforcement officer or a compliance officer acting for the purposes of this Act shall have power for the performance of his duties— 
 (a) to require the production by a relevant person of any records required to be kept by virtue of this Act, to inspect and examine those records, to remove those records from the premises where they are kept and to copy any material part of them, 
 (b) to require a relevant person to furnish to him (either alone or in the presence of any other person, as the officer thinks fit) an explanation of any such records, 
 (c) to require a relevant person to furnish to him (either alone or in the presence of any other person, as the officer thinks fit) any additional information known to the relevant person which might reasonably be needed in order to establish whether— 
 (i) any provision of this Act, or 
 (ii) any condition of any licence granted under it, 
 is being complied with, 
 (d) at all reasonable times to enter any relevant premises in order to exercise any power conferred on the officer by virtue of paragraphs (a) to (c). 
 (2) The powers conferred by subsection (1) include power, on reasonable written notice, to require a relevant person— 
 (a) to produce any such records as are mentioned in paragraph (a) of that subsection to an officer at such time and place as may be specified in the notice, or 
 (b) to attend before an officer at such time and place as may be specified in the notice to furnish any such explanation or additional information as is mentioned in paragraph (b) or (c) of that subsection. 
 (3) The power conferred by subsection (1)(a) includes, in relation to records which are kept by means of a computer, power to require the records to be produced in a form in which they are legible and can be taken away. 
 (4) A person authorised by virtue of subsection (1)(a) to inspect any records is entitled to have access to, and to check the operation of, any computer and any associated apparatus or material which is or has been in use in connection with the records in question. 
 (5) In this section ''relevant person'' means any person whom an officer acting for the purposes of this Act has reasonable cause to believe to be— 
 (a) a person acting as a gangmaster, 
 (b) a person supplied with workers or services by a person acting as a gangmaster, 
 (c) any employee or agent of a person falling within paragraph (a) or (b). 
 (6) In this section and section (Entry by warrant)— 
 ''relevant premises'' means any premises which an officer acting for the purposes of this Act has reasonable cause to believe to be— 
 (a) premises at which a person mentioned in subsection (5)(a) or (b) carries on business, and 
 (b) premises which such a person uses in connection with his business, 
 ''premises'' includes any place and, in particular, includes— 
 (a) any vehicle, vessel, aircraft or hovercraft, and 
 (b) any tent or movable structure.'.—[Jim Sheridan.]
 Brought up, read the First and Second time, and added to the Bill.

New clause 17 - Entry by warrant

'(1) If a justice of the peace is satisfied by written information on oath that there are reasonable grounds for an enforcement officer to enter relevant premises for the purpose of ascertaining whether there has been any contravention of section (Prohibition of unlicensed activities) (prohibition of unlicensed activities), and is also satisfied— 
 (a) that admission to the premises has been refused, or that a refusal is expected, and (in either case) that notice of the intention to apply for a warrant has been given to the occupier, 
 (b) that an application for admission, or the giving of such a notice, would defeat the object of the entry, 
 (c) that the case is one of extreme urgency, or 
 (d) that the premises are unoccupied or the occupier is temporarily absent, 
 the justice may issue a warrant authorising the enforcement officer to enter the premises, if necessary using reasonable force. 
 (2) An enforcement officer entering any premises by virtue of a warrant under this section may— 
 (a) take with him when he enters those premises such other persons and such other equipment as he considers necessary, 
 (b) carry out on those premises such inspections and examinations as he considers necessary for the purpose of ascertaining whether there has been any contravention of section (Prohibition of unlicensed activities), and 
 (c) take possession of any book, document, data, record (in whatever form it is held) or product which is on the premises and retain it for as long as he considers necessary for that purpose. 
 (3) On leaving any premises which an enforcement officer is authorised to enter by a warrant under this section, that officer shall, if the premises are unoccupied or the occupier is temporarily absent, leave the premises as effectively secured against trespassers as he found them. 
 (4) Where by virtue of subsection (2)(c) an enforcement officer takes possession of any item, he shall leave on the premises from which the item was removed a statement giving particulars of what he has taken and stating that he has taken possession of it. 
 (5) In the application of this section to Scotland— 
 (a) the reference to a justice of the peace being satisfied by written information on oath, shall be read as a reference to a sheriff or a justice of the peace being satisfied; and 
 (b) ''the justice'' shall be read as a reference to the sheriff, or as the case may be, to the justice.'.—[Jim Sheridan.]
 Brought up, read the First and Second time, and added to the Bill.

New clause 18 - Obstruction of officers

'(1) A person commits an offence who— 
 (a) intentionally obstructs an enforcement officer or compliance officer who is acting in the exercise of his functions under this Act, or 
 (b) without reasonable cause, fails to comply with any requirement made of him by such an officer who is so acting. 
 (2) A person who, in giving any information which is required of him by an enforcement officer or compliance officer, makes a statement which is false in a material particular commits an offence. 
 (3) A person guilty of an offence under this section is liable— 
 (a) on summary conviction in England and Wales, to imprisonment for a term not exceeding 51 weeks, or to a fine not exceeding the statutory maximum, or to both, 
 (b) on summary conviction in Scotland or Northern Ireland, to imprisonment for a term not exceeding six months, or to a fine not exceeding the statutory maximum, or to both. 
 In relation to an offence committed before the commencement of 
section 281(5) of the Criminal Justice Act 2003, for ''51 weeks'' in paragraph (a) substitute ''six months''.'.—[Jim Sheridan.]
 Brought up, read the First and Second time, and added to the Bill.

New clause 19 - Information relating to gangmasters

'(1) Information held by any person for the purposes of, or for any purpose connected with, the exercise of functions under this Act— 
 (a) may be supplied to any other person for use for any such purpose, and 
 (b) may be supplied to any person having functions in relation to— 
 (i) the enforcement of any other enactment applying to the operations of a person acting as a gangmaster, 
 (ii) the enforcement of any other enactment in connection with accommodation, meals or facilities provided to workers, or the conditions in which they work, or 
 (iii) offences committed by workers in connection with or by reason of their doing work to which this Act applies, 
 for use for the purposes of, or for any purpose connected with, those functions. 
 (2) Information relating to the operations of a person acting as a gangmaster which is held by any person for the purposes of, or for any purpose connected with, such functions as are mentioned in subsection (1)(b) may be supplied to any person having functions under this Act for the purposes of, or for any purpose connected with, the exercise of those functions. 
 (3) Information supplied under subsection (2) by or on behalf of the Commissioners of Inland Revenue or the Commissioners of Customs and Excise must not be supplied by the recipient to any other person without the consent of the Commissioners concerned. 
 (4) This section— 
 (a) has effect notwithstanding any restriction on the disclosure of information imposed by any enactment or rule of law, and 
 (b) does not limit the circumstances in which information may be used or supplied apart from this section. 
 (5) In this section ''enactment'' means an Act of Parliament, an Act of the Scottish Parliament or any Northern Ireland legislation or any instrument made under or having effect by virtue of an Act of Parliament, an Act of the Scottish Parliament or any Northern Ireland legislation. 
 (6) References in this section to a person having functions of any description include references to any person providing, or employed in the provision of, services for that person in connection with those functions.'.—[Jim Sheridan.]
 Brought up, read the First and Second time, and added to the Bill.

New clause 20 - Application of Act to bodies corporate

'(1) A licence under this Act may be granted to a body corporate. 
 (2) A licence granted to a body corporate authorises activities carried on by the body through such persons representing, or acting on behalf of, the body as are named or otherwise specified in the licence. 
 (3) If an offence under this Act committed by a body corporate is shown— 
 (a) to have been committed with the consent or connivance of an officer of the body corporate, or 
 (b) to be attributable to any neglect on his part, 
 the officer, as well as the body corporate, is guilty of the offence and liable to be proceeded against and punished accordingly. 
 (4) In subsection (3) ''officer'' means— 
 (a) any director, manager, secretary or other similar officer of the body corporate, or 
 (b) any person purporting to act in any such capacity. 
 (5) If the affairs of a body corporate are managed by its members, subsection (3) applies in relation to the acts and defaults of a member in connection with his functions of management as if he were a director of the body corporate.'.—[Jim Sheridan.]
 Brought up, read the First and Second time, and added to the Bill.

New clause 21 - Application of Act to unincorporated associations

'(1) A licence under this Act may be granted to an unincorporated association (other than a partnership). 
 (2) A licence granted to an unincorporated association authorises activities carried on by the association through such persons representing, or acting on behalf of, the association as are named or otherwise specified in the licence. 
 (3) Proceedings for an offence under this Act alleged to have been committed by an unincorporated association may be brought against the association in the name of the association. 
 (4) For the purposes of such proceedings— 
 (a) rules of court relating to the service of documents have effect as if the association were a body corporate, and 
 (b) the following provisions apply as they apply in relation to a body corporate— 
 section 33 of the Criminal Justice Act 1925 and Schedule 3 to the Magistrates' Courts Act 1980, 
 sections 70 and 143 of the Criminal Procedure (Scotland) Act 1995, 
 section 18 of the Criminal Justice Act (Northern Ireland) 1945 and Schedule 4 to the Magistrates' Courts (Northern Ireland) Order 1981. 
 (5) A fine imposed on the association on its conviction of an offence shall be paid out of the funds of the association. 
 (6) If an offence under this Act committed by an unincorporated association is shown— 
 (a) to have been committed with the consent or connivance of an officer of the association, or 
 (b) to be attributable to any neglect on his part, 
 the officer, as well as the association, is guilty of the offence and liable to be proceeded against and punished accordingly. 
 (7) In subsection (6) ''officer'', in relation to any association, means— 
 (a) any officer of the association or any member of its governing body, or 
 (b) any person purporting to act in such a capacity.'.—[Jim Sheridan.]
 Brought up, read the First and Second time, and added to the Bill.

New clause 22 - Application of Act to partnerships

'(1) A licence under this Act may be granted to a partnership in the firm name. 
 (2) Where the partnership is not regarded as a legal person under the law of the country or territory under which it is formed, the grant of a licence to the partnership in the firm name— 
 (a) continues to have effect notwithstanding a change of partners, so long as at least one of the persons who was a partner before the change remains a partner after it; and 
 (b) has effect as the grant of a licence to those partners named in the licence. 
 (3) If in the case of such a partnership an offence under this Act committed by a partner is shown— 
 (a) to have been committed with the consent or connivance of another partner, or 
 (b) to be attributable to any neglect on the part of another partner, 
 that other partner, as well as the first-mentioned partner, is guilty of the offence and liable to be proceeded against and punished accordingly. 
 (4) A licence granted to a partnership that is regarded as a legal person under the law of the country or territory under which it is formed authorises activities carried on by the partnership through those partners named in the licence. 
 (5) Proceedings for an offence under this Act alleged to have been committed by such a partnership may be brought against the partnership in the firm name. 
 (6) For the purposes of such proceedings— 
 (a) rules of court relating to the service of documents have effect as if the partnership were a body corporate, and 
 (b) the following provisions apply as they apply in relation to a body corporate— 
 section 33 of the Criminal Justice Act 1925 and Schedule 3 to the Magistrates' Courts Act 1980, 
 sections 70 and 143 of the Criminal Procedure (Scotland) Act 1995, 
 section 18 of the Criminal Justice Act (Northern Ireland) 1945 and Schedule 4 to the Magistrates' Courts (Northern Ireland) Order 1981. 
 (7) A fine imposed on a partnership on its conviction of an offence shall be paid out of the funds of the partnership. 
 (8) If an offence under this Act committed by a partnership is shown— 
 (a) to have been committed with the consent or connivance of a partner, or 
 (b) to be attributable to any neglect on the part of a partner, 
 the partner, as well as the partnership, is guilty of the offence and liable to be proceeded against and punished accordingly. 
 (9) In subsections (3) and (8) ''partner'' includes a person purporting to act as a partner.'.—[Jim Sheridan.]
 Brought up, read the First and Second time, and added to the Bill.

New clause 23 - Annual report

'The Secretary of State shall each year lay a report before each House of Parliament on the operation of this Act.'—[Jim Sheridan.]
 Brought up, read the First and Second time, and added to the Bill.

New clause 24 - Financial provision

'(1) The Secretary of State may make payments to the Authority of such amounts, at such times and on such conditions (if any) as he considers appropriate. 
 (2) The Authority shall (unless the Secretary of State directs otherwise) pay to the Secretary of State all sums received by it in the course of, or in connection with, the carrying out of its functions. 
 (3) Any sums received by the Secretary of State under subsection (2) shall be paid into the Consolidated Fund.'.—[Jim Sheridan.]
 Brought up, read the First and Second time, and added to the Bill.

New clause 25 - Regulations, rules and orders

'(1) In this Act, unless otherwise indicated, ''prescribed'' means prescribed by regulations made by the Secretary of State. 
 (2) Any power to make regulations or rules under this Act includes power to make different provision for different cases. 
 (3) Any power of the Secretary of State to make regulations or orders under this Act is exercisable by statutory instrument. 
 (4) Any power of the Authority to make rules under this Act is exercisable by statutory instrument. 
 (5) A statutory instrument containing regulations made by the Secretary of State under— 
 (a) section (The Gangmasters Licensing Authority)(5) (regulations as to status, constitution, etc. of the Authority), or 
 (b) section (Work to which this Act applies)(5)(b) (regulations extending work to which this Act applies), 
 must not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament. 
 (6) A statutory instrument containing— 
 (a) regulations made by the Secretary of State under any other provision of this Act, or 
 (b) rules made by the Authority under section (General power of Authority to make rules) (general power of Authority to make rules), 
 is subject to annulment in pursuance of a resolution of either House of Parliament.'.—[Jim Sheridan.]
 Brought up, read the First and Second time, and added to the Bill.

New clause 26 - Meaning of ''worker''

'(1) In this Act ''worker'' means an individual who does work to which this Act applies. 
 (2) A person is not prevented from being a worker for the purposes of this Act by reason of the fact that he has no right to be, or to work, in the United Kingdom.'.—[Jim Sheridan.]
 Brought up, read the First and Second time, and added to the Bill.

New clause 27 - Exclusion of provisions relating to employment agencies and businesses

'(1) The Employment Agencies Act 1973 does not apply to an employment agency or an employment business in so far as it consists of activities for which a licence is required under this Act. 
 (2) In subsection (1) ''employment agency'' and ''employment business'' have the same meaning as in that Act'.—[Jim Sheridan.]
 Brought up, read the First and Second time, and added to the Bill.

New clause 28 - Application of Act to Northern Ireland

'The provisions of Schedule (Application of Act to Northern Ireland) to this Act have effect with respect to the application of this Act to Northern Ireland.'.—[Jim Sheridan.]
 Brought up, read the First and Second time, and added to the Bill.

New clause 29 - Commencement and transitional provision

'(1) The provisions of this Act come into force on such day as the Secretary of State may by order appoint. 
 (2) Different days may be appointed for different purposes and for different areas. 
 (3) The Secretary of State may by order make such transitional provision as he considers appropriate in connection with the coming into force of any provision of this Act.'.—[Jim Sheridan.]
 Brought up, read the First and Second time, and added to the Bill. 
 Schedule disagreed to.

New schedule 1 - 'The Authority: consequential amendments of enactments

Public Records Act 1958 
 1 In Schedule 1 to the Public Records Act 1958 (definition of public records), in Part 2 of the Table at the end of paragraph 3, at the appropriate place insert— 
 ''Gangmasters Licensing Authority''. 
 Parliamentary Commissioner Act 1967 
 2 In Schedule 2 to the Parliamentary Commissioner Act 1967 (departments etc.subject to investigation), at the appropriate place insert— 
 ''Gangmasters Licensing Authority''. 
 Superannuation Act 1972 
 3 In Schedule 1 to the Superannuation Act 1972 (kinds of employment to which that Act applies), at the appropriate place insert— 
 ''Gangmasters Licensing Authority''. 
 House of Commons Disqualification Act 1975 
 4 In Part 2 of Schedule 1 to the House of Commons Disqualification Act 1975 (bodies whose members are disqualified), at the appropriate place insert— 
 ''Gangmasters Licensing Authority''. 
 Northern Ireland Assembly Disqualification Act 1975 
 5 In Part 2 of Schedule 1 to the Northern Ireland Assembly Disqualification Act 1975 (bodies whose members are disqualified), at the appropriate place insert— 
 ''Gangmasters Licensing Authority''. 
 Freedom of Information Act 2000 
 6 In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (bodies etc.that are public authorities for the purposes of the Act), at the appropriate place insert— 
 ''Gangmasters Licensing Authority''.'. 
 —[Jim Sheridan.]
 Brought up, read the First and Second time, and added to the Bill.

New schedule 2 - 'Application of Act to Northern Ireland

Introduction 
 1 (1) The following provisions have effect in relation to the application of this Act to Northern Ireland. 
 (2) For the purposes of this Schedule the relevant Northern Ireland department is the Department of Agriculture and Rural Development in Northern Ireland. 
 General 
 2 (1) References in this Schedule to ''work in Northern Ireland'' are to work— 
 (a) in Northern Ireland, 
 (b) on any portion of the shore or bed of the sea, or of an estuary or tidal river, adjacent to Northern Ireland, whether above or below (or partly above and partly below) the low water mark, or 
 (c) in Northern Ireland coastal waters. 
 (2) In sub-paragraph (1)(c) ''Northern Ireland coastal waters'' means waters adjacent to Northern Ireland to a distance of six miles measured from the baselines from which the breadth of the territorial sea is measured. 
 In this sub-paragraph ''miles'' means international nautical miles of 1,852 metres. 
 (3) The provisions of this Act relating to work in Northern Ireland apply where a person acts as a gangmaster, whether in Northern Ireland or elsewhere, in relation to work in Northern Ireland to which this Act applies. 
 (4) References in this Schedule to ''Northern Ireland licences'' are to licences under this Act in respect of activities as a gangmaster in relation to work in Northern Ireland. 
 Section (The Gangmasters Licensing Authority): The Gangmasters Licensing Authority 
 3 In relation to persons acting as gangmasters in Northern Ireland or persons acting as gangmasters in relation to work in Northern Ireland, the reference to the Secretary of State in section (The Gangmasters Licensing Authority) (2)(f) (power to prescribe additional functions of Authority) shall be read as a reference to the relevant Northern Ireland department. 
 4 Before making any regulations under that provision, the relevant Northern Ireland department shall consult the Secretary of State. 
 5 Before making any regulations under section (The Gangmasters Licensing Authority)(5) (regulations as to status, constitution etc of the Authority), the Secretary of State shall consult the relevant Northern Ireland department. 
 Section (Directions etc by the Secretary of State): Directions etc by the Secretary of State 
 6 In relation to the Authority's functions in connection with persons acting as gangmasters in Northern Ireland or persons acting as gangmasters in relation to work in Northern Ireland, the references in section (Directions etc by the Secretary of State) to the Secretary of State shall be read as references to the relevant Northern Ireland department. 
 Section (Work to which this Act applies): Work to which this Act applies 
 7 In section (Work to which this Act applies) (5) (power to make regulations excluding or including work) as it applies in relation to work in Northern Ireland— 
 (a) the reference to the Secretary of State shall be read as a reference to the relevant Northern Ireland department, and 
 (b) for the reference to the Diseases of Fish Act 1937 substitute a reference to the Fisheries Act (N.I.) 1966. 
 Section (Prohibition of unlicensed activities): Prohibition of unlicensed activities 
 8 In section (Prohibition of unlicensed activities) (2) (power to specify circumstances in which licence not required) as it applies in relation to work in Northern Ireland, the reference to the Secretary of State shall be read as a reference to the relevant Northern Ireland department. 
 Section (Grant of licence): Grant of licence 
 9 The Authority shall grant separate licences in respect of activities as a gangmaster in relation to work in Northern Ireland. 
 Section (General power of Authority to make rules): General power of Authority to make rules 
 10 (1) Rules under section (General power of Authority to make rules) (general power of Authority to make rules) may make different provision for Northern Ireland licences. 
 (2) In section (General power of Authority to make rules) (3) as it applies in relation to rules requiring the payment of fees in connection with Northern Ireland licences, the reference to the Secretary of State shall be read as a reference to the relevant Northern Ireland department. 
 Section (Appeals): Appeals 
 11 In section (Appeals) as it applies in relation to decisions made in connection with Northern Ireland licences, the reference to the Secretary of State shall be read as a reference to the relevant Northern Ireland department. 
 Section (Register of licences): Register of licences 
 12 The Authority shall establish and maintain a separate register of Northern Ireland licences. 
 Section (Offences: entering into arrangements with gangmasters): Offences: entering into arrangements with gangmasters 
 13 In section (Offences: entering into arrangements with gangmasters) (3) (power to make regulations as to what constitutes ''reasonable steps'') as it applies in relation to persons entering into arrangements with gangmasters in relation to work in Northern Ireland, the reference to the Secretary of State shall be read as a reference to the relevant Northern Ireland department. 
 Section (Offences: supplementary provisions): Offences: supplementary provisions 
 14 In section (Offences: supplementary provisions) (1) (additional powers of arrest) the reference to section 24(4) and (5) of the Police and Criminal Evidence Act 1984 shall be read as a reference to Article 26(4) and (5) of the Police and Criminal Evidence (Northern Ireland) Order 1989. 
 Section (Enforcement and compliance officers): Enforcement and compliance officers 
 15 (1) The relevant Northern Ireland department may appoint officers (''enforcement officers'') to act for the purposes of this Act in Northern Ireland— 
 (a) in enforcing the provisions of section (Prohibition of unlicensed activities) (prohibition of unlicensed activities), and 
 (b) in taking action in circumstances in which it appears that an offence under section (Offences: entering into arrangements with gangmasters) (persons entering into arrangements with gangmasters) has been, is being, or may be committed. 
 (2) The relevant Northern Ireland department may, instead of or in addition to appointing enforcement officers under sub-paragraph (1), make arrangements with a relevant authority for officers of that authority to be enforcement officers in Northern Ireland. 
 (3) The following are relevant authorities for this purpose— 
 (a) the Authority, 
 (b) any Minister of the Crown or government department, 
 (c) any Minister within the meaning of the Northern Ireland Act 1998 or Northern Ireland department, 
 (d) any body performing functions on behalf of the Crown. 
 Section (Entry by warrant): Entry by warrant 
 16 In section (Entry by warrant) the reference in subsection (1) to information on oath shall be read as a reference to a complaint on oath. 
 Section (Annual report): Annual report 
 17 (1) The Secretary of State shall send to the relevant Northern Ireland department a copy of every report laid by him before Parliament under section (Annual report). 
 (2) The relevant Northern Ireland department shall lay a copy of the report before the Northern Ireland Assembly. 
 Section (Financial provision): Financial provision 
 18 In relation to payments to the Authority with respect to its functions in connection with persons acting as gangmasters in Northern Ireland or persons acting as gangmasters in relation to work in Northern Ireland, the reference in section (Financial provision) (1) to the Secretary of State shall be read as a reference to the relevant Northern Ireland department. 
 Section (Regulations, rules and orders): Regulations, rules and orders 
 19 (1) In section (Regulations, rules and orders) (1) (meaning of ''prescribed'') as it applies in relation to matters in relation to which the relevant Northern Ireland department has power to make regulations the reference to the Secretary of State shall be read as a reference to the relevant Northern Ireland department. 
 (2) Regulations under this Act made by the relevant Northern Ireland department shall be made by statutory rule (for the purposes of the Statutory Rules (Northern Ireland) Order 1979). 
 (3) A statutory rule containing regulations under section (Work to which this Act applies)(5)(b) (regulations extending work to which this Act applies) must not be made unless a draft of the rule has been laid before and approved by the Northern Ireland Assembly. 
 (4) Any other power under this Act to make a statutory rule is subject to negative resolution. 
 In this sub-paragraph ''negative resolution'' shall be construed in accordance with section 41 of the Interpretation Act (Northern Ireland) 1954. 
 Section (Exclusion of provisions relating to employment agencies and businesses): Exclusion of provisions relating to employment agencies and businesses 
 20 In section (Exclusion of provisions relating to employment agencies and businesses) as it applies in relation to activities in relation to work in Northern Ireland, the references to the Employment Agencies Act 1973 shall be read as references to Part 2 of the Employment (Miscellaneous Provisions) (Northern Ireland) Order 1981. 
 Section (Commencement and transitional provision): Commencement and transitional provision 
 21 Before exercising the power under section (Commencement and transitional provision)(1) or (3) in relation to the coming into force of any provision of this Act in relation to persons acting as gangmasters in relation to work in Northern Ireland, the Secretary of State shall consult the relevant Northern Ireland department.'.—[Jim Sheridan.]
 Brought up, read the First and Second time, and added to the Bill.

Title

Amendment made: No. 9, in 
title, line 1, leave out from 'of' to 'and' in line 2 and insert 
 'activities involving the supply or use of workers in connection with agricultural work, the gathering of wild creatures and wild plants, the harvesting of fish from fish farms, and certain processing and packaging;'.—[Jim Sheridan.]

Alun Michael: On a point of order, Mr. Illsley, I think that this is the appropriate stage to thank you for the enormous good humour and efficiency with which you have dispatched the business of this Committee. I am sure that it required all your undoubted talents to achieve that outcome.
 We could not have reached this point without the willingness of my hon. Friend the Member for West Renfrewshire to engage with such a wide range of 
 interested parties outside this place and with hon. Members across the House. The time spent preparing for today's proceedings has been well spent. It has involved the Transport and General Workers Union, the National Farmers Union, a wide range of other organisations and hon. Members from each of the three main parties. It has also involved my officials in discussions that were slightly innovative, even for DEFRA, which is used to talking to all sorts of people in all sorts of places. I place on record my thanks to them for their willingness to be open in those discussions. That is what has made it so fruitful. As an exercise in co-operation, we can all congratulate ourselves. 
 The issues that have been raised by Labour, Conservative and Liberal Democrat Members have been entirely legitimate. They are complex issues and we will not seek to brush them aside. They will be in our minds as we design the secondary legislation and establish the agency. I wanted to put that on record because it has been a unique process, not only because you were able to dispatch so much business in a few seconds, Mr. Illsley. I pass our thanks, as ever, to the Clerk, Hansard and the security officials, who have managed to keep order in this Committee Room while we have worked our way through these issues.

Eric Illsley: I am grateful to the right hon. Gentleman, and I am sure that all members of the Committee appreciate what he has said. I would like to echo his comments about the police, Hansard and the Clerk to the Committee, who has prepared a very accurate, if not entirely clear brief for the Chairman. I congratulate the hon. Member for West Renfrewshire on bringing the Bill forward.
 Bill, as amended, to be reported. 
 Committee rose at twenty-five minutes past Five o'clock.